How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask taxadvisor.uk Your Own Question
taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 5145
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
54961312
Type Your Tax Question Here...
taxadvisor.uk is online now

I forgot to register my limited company for PAYE during the

This answer was rated:

I forgot to register my limited company for PAYE during the 2016-17 tax year which ended on 31 March 2017. Does this mean I can't pay myself (as Director) the tax efficient amount for that year (which I have understood to be £8,040 to avoid NIC)?I would of course like to avoid having to recognise £8,040 as profit and pay 20% corporation tax on it.One caveat: I have a sole trader company in addition to my limited company. Seeing as I missed the PAYE deadline, would it be possible to say that my limited company contracted my sole trader company and paid it £8,040 for the purpose of building an application? This would then appear as a Cost of Goods Sold on the limited company and could be taken out as salary from the sole trader company.

Hello and welcome to JustAnswer. I am here to help you. I am reviewing your question and will respond to you shortly.
Many thanks

Thank you for your question.

What is your company's accounting year end?

Do you file a tax return?

Have you registered your company as new employer under PAYE scheme

I presume you are registered for self assessment as a sole trader

Many thanks

Have you registered your company as new employer for PAYE scheme

Customer: replied 4 months ago.
My year end for FY2016-17 was 31 March 2017. I am currently preparing the tax return for that year.
No, I have not registered my limited company as a new employer for PAYE scheme.Yes, I am registered for self assessment with my sole trading company.

Thank you for your reply.

Your thought of raising an invoice to your LTD company from your business as a sole trader is not workable as you can't be a director of a company and be self employed doing work for that company.

You should normalise your salary from the company by registering your company under PAYE scheme for future salary withdrawals.

As a one off for year ended 31 Mar 2017 you could pay yourself a bonus outside the PAYE scheme and show it as other UK taxable income on your main tax return and pay income tax on it through self assessment. This should be a one off only.

I hope this is helpful and answers your question.

If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.

taxadvisor.uk and other Tax Specialists are ready to help you

I thank you for accepting my answer and the phone call.

Best wishes.